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Unconventional Gas Economics

4 days ENE/UCGI
Level
Foundation
Audience
  • People involved in unconventional gas project analysis.
Purpose
  • To make investment decision related to unconventional gas projects.
Learning Objectives
  • Upon completion of the course, the participants will be able to:
  • understand the characteristics of shale, tight and coal bed methane,
  • describe the steps, technologies and costs to develop an unconventional gas project,
  • understand the importance of the concept and calculation of net present value and internal rate of return in decision making,
  • introduce to the economic evaluation of unconventional gas play,
  • compare and evaluate unconventional gas developments,
  • appreciate the impact of the learning curve on the profitability,
  • locate the unconventional gas resources and what are the situation and the challenges country per country,
  • define the impact of unconventional gas on price formulae and the markets unbalance,
  • identify the impact of unconventional gas on economies and industries,
  • identify the main unconventional gas contractors and operators and it strategy,
  • describe the environmental risks related to the production of unconventional gas.
Prerequisite
  • No prerequisites for this course.
Ways and means
  • Game on the unconventional exploration and production technics.
  • Videos.
  • Unconventional gas project analysis, sensitivity study and decision analysis.
  • Hedging strategy.

UNCONVENTIONAL GAS CHARACTERISTICS 0.2 day
  • Conventional and unconventional gas (shale gas, tight gas, coal bed methane, hydrates).
  • Resources & reserves.
UPSTREAM STEPS, TECHNICS & COSTS 0.8 day
  • Geology, permit negotiation & geophysics.
  • Identification & site preparation.
  • Directional & horizontal drilling.
  • Hydraulic Fracture Stimulation & Micro-seismic Fracture Mapping.
  • Decommissioning.
ECONOMIC ANALYSIS & INVESTMENT DECISION 2 days
  • Production profile characteristics (Arps Equation and EUR).
  • Associated products value.
  • Economic variables associated with shale gas developments (F&D, Drilling, Fracking, T&F, LOE).
  • Fiscal impact (Concession, PSA).
  • Economic Evaluation Criteria.
  • Shale gas project cash flow analysis.
  • Impact of the learning curve on the profitability.
  • Hedging strategy (price, currency, toll fees).
  • Financing issues & needs.
  • Financing solutions (M&A, PE, MLP, FI/FO).
  • Introduction to risk analysis (sensitivity analysis, decision tree & Monte Carlo analysis).
ECONOMIC & STRATEGIC IMPACT OF UNCONVENTIONAL GAS REVOLUTION 0.75 day
  • Panorama of unconventional gas developments: North & Latin America, Europe, Africa & Middle East, Asia Pacific.
  • Unconventional gas market (contractors and size of the market).
  • Strategy of the O&G companies (small and big independents, IOC, NOC).
  • Impact on the gas trades and gas price.
  • Indirect impacts on energy prices (oil price, coal price).
  • Economic impact on industries and government budgets (focus on petrochemicals, refining, and exporting and importing economies).
ENVIRONMENTAL IMPACT & ISSUES 0.25 day
  • Environmental issues
  • Water consumption, water treatment & waste issues.
  • Surface footprint & noise.
  • Greenhouse gas emissions.
  • Seismic events.
  • The protagonists of the debate & their communication strategy
  • The pro (O&G producers and contractors, organization, energy consumers).
  • The cons (environmental & anti-globalization associations, renewable industry, some consumers).